A recruiter will charge 5% of the salary of the person you hire. The position you are hiring for pays $55,000 per year. Choosing to find the candidate on your own without the use of a recruiter will cost you an extra week of your time. If the executive doing the hiring earns $200,000 per year, which choice would save the company money? The recruiter or the executive?

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow